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drunkguy
Registered Member

Date Joined Mar 2005
Total Posts : 944

Posted 5/12/2005 8:08 AM (GMT -5)

Party unveils profits as it moves towards IPO

Poker giant Party Gaming has revealed 2004 profits of US$391m and appointed two non-executive directors in a sure sign it is going ahead with a US$10bn listing on the London Stock Exchange this summer.
Unaudited EBIDTA profits for Party Gaming, before share option expenses, are ahead of market expectations of US$350m, and are also a stunning 65% of annual revenues of US$602m.

The firm, which is the parent company of Party Poker, is now widely expected to push ahead with plans for an IPO in July.

The valuation of Party Gaming is believed to be in the region of US$10bn, which will make it the largest listed online gaming company at five times the size of Sportingbet.

Party made the announcement after completing its strategic review, which was undertaken by investment banks Investec and Dresdner Kleinwort Wasserstein (DrKW).

But the firm said it has solely retained DrKW to advise on the potential float to the surprise of some analysts who had expected both banks to handle what will probably be the largest IPO on the London Stock Exchange this year.

A well placed city source has reported Investec pulled out of its relationship with Party.

But the firm said there was no truth to the market rumours and it still had a good relationship with the bank.

A Party spokesman would not confirm plans for an IPO, but a successful listing would be hugely important for the egaming sector.

Several major egaming firms, including Party’s Gibraltar neighbours Cassava Enterprises, are known to be keen to go public.

And many smaller firms who are looking at a listing will watch how the market receives the party listing with great interest.

Party's appointment of two heavyweight non-executive directors is also a significant step in the direction of an IPO.

Michael Jackson, currently chairman of software firm Sage Group, was named as non-executive chairman.

And Brian Larcombe, formerly chief executive of venture capital fund 3i Group, was named as non-executive deputy chairman.

from egaming review magazine

www.egrmagazine.com/cgi-bin/articles.pl?action=display&id=745§ion=3&keyword=

drunkguy
Registered Member

Date Joined Mar 2005
Total Posts : 944

Posted 5/13/2005 12:12 PM (GMT -5)

Is the Party going ahead as planned?
Analysts have cautiously agreed with the rumoured US$10bn valuation attached to the impending Party Gaming IPO, although one senior figure has questioned whether it is an achievable target.
The valuation of the business at US$10bn is derived from the multiples of pre-tax earnings (EBITDA) used for Sportingbet, the largest pure-egaming stock on the LSE.

“A multiple of 25-times EBITDA is not inconceivable as this is around the level that the internet gaming software vendors are trading,” one investment bank gaming analyst who preferred not to be named said.

It is believed Party is hoping to achieve a valuation in the region of US$10bn, but other industry experts are far less certain this target can be met.

“Party is a great business and it will be good to see them listed, but I must confess to being surprised at the valuation," Nigel Payne, chief executive of Sportingbet, said.

"In my opinion it is higher than would have been expected and than will probably be achieved.”

“Having said that it is good to see another substantial online gaming company coming to the market and I wish them well,” he added.

Jodi Littlepage, director of egaming financial specialists AIMIX, said she felt there was just cause to be reasonably confident in the US$10bn valuation.

“I feel that a valuation at 25.6-times historic EBITDA and 16.7-times pro forma EBITDA is rich, but not completely unreasonable given that the rest of the story stacks up,” Littlepage said.

“By deriving much of its revenue from the somewhat unclear US egaming market, investors will need comfort in the company's directors or management ability to mitigate this risk through geographic or product diversification.

“But the Party group has elected an impressive board of directors and I feel the over-inflated issue surrounding the founding shareholder, who I would expect is looking to exit, is more of a concern of the media than of investors,” she added.

And she said she was confident that despite persistent rumours surrounding the ending of Party Gaming’s relationship with its ex-advisors Investec the listing should go through without a discount.

“I feel Party are taking appropriate and normal steps with their impending floatation, and personalities willing it will take off as expected,” Littlepage added.

from e gaming review

www.egrmagazine.com/cgi-bin/articles.pl?action=display&id=749§ion=3&keyword=

drunkguy
Registered Member

Date Joined Mar 2005
Total Posts : 944

Posted 6/19/2005 2:16 AM (GMT -5)

PartyGaming IPO details come to light
PartyGaming has revealed detailed plans for its US$8.6bn IPO on the London Stock Exchange, which is due to take place on 30 June.
The firm will have an estimated valuation of £4.76bn following the listing, with 20.6% of the founder shares placed with institutional investors.

The final share price is expected to be announced on 27 June, but the firm issued a guideline valuation of between 111-127p per share.

No new money is being raised for the firm, which is cash-rich, but it will raise more than US$1bn for its founder investors.

Some analysts have questioned the reasons behind the firm's listing when it is so cash-rich, but Richard Segal, its chief executive, said it was the next logical step in the group's evolution.

“A listing will enhance the visibility of the group and its brands among all our stakeholders, including customers, partners and employees, at a time when PartyGaming is seeking to expand internationally," Segal said.

Anurag Dikshit, who wrote the original code for the poker software, will be the biggest winner netting around US$684m in cash with his remaining stake worth around US$2.74bn.

A similar sized amount of shares will be sold by the combined holdings of PartyGaming founder Ruth Parasol and her husband Russ DeLeon, who will be worth around US$1.37bn each following the listing.

Vikrant Bhargava, ParrtyGaming’s marketing director and the public face of Party Poker, will pocket US$195m and hold onto shares worth US$777m.

from e-gaming review

www.egrmagazine.com/cgi-bin/articles.pl?action=display&id=810§ion=3&keyword=

drunkguy
Registered Member

Date Joined Mar 2005
Total Posts : 944

Posted 6/20/2005 9:39 AM (GMT -5)

PARTY GAMING, the online poker company planning a controversial £4.8 billion London listing, faces the threat of legal action under the Canadian Criminal Code.

Canada is an important market for the poker group but there are doubts about if the firm’s gaming licence is legitimate. The group’s prospectus reveals “directors have been advised that the extent of the group’s operations and presence in Canada may be sufficient for criminal or civil action to be taken”.

The group’s gaming licence was issued by the Kahnawake Gaming Commission in Canada. But the company conceded that there were serious doubts at a federal level as to whether this commission had the authority to issue such a licence. There are also no guarantees that a second licence will be issued.

To reduce this risk, Party Gaming is moving its server centre to Gibraltar from Canada’s Mohawk Territory. The casino and bingo server is being moved this August and the poker server by November. But it will retain a back-up operation in Canada.

The firm has refused to disclose terms of director’s contracts and its level of insurance to cover litigation. It said there was little risk of directors being arrested when they travelled to America, though the Department of Justice considers online poker to be in violation of federal law — a view not shared universally.

Paul Telford at Allen & Overy, a law firm, said: “I imagine in the short term the directors are probably staying well clear of the US on the ground that they would consider themselves at risk were they to enter the country.” Party Gaming said executives regularly travelled to the US.

Other authorities are taking a more relaxed view. Party Gaming’s prospectus warns that its Gibraltar gaming licence permits it to offer gambling services only in countries in which “it is not illegal”. The Gibraltar government said it saw no reason to revoke the licence. Shares in the grey market are trading at the lower end of the float range.

www.timesonline.co.uk/article/0,,2095-1659883,00.html

drunkguy
Registered Member

Date Joined Mar 2005
Total Posts : 944

Posted 6/24/2005 11:16 AM (GMT -5)

PartyGaming expected to surpass IPO valuation
PartyGaming’s IPO is reportedly heavily oversubscribed and the firm is expected to comfortably make its US$8.5bn valuation despite reports of investor anxieties.
Institutional investors have dismissed concerns over US regulatory issues, and the firm is believed to have cut short its institutional road show due to the demand.

Initial trading in the firm is set to start on Monday, with full dealing expected to start on 30 June.

The news is in stark contrast to previous reports it would be forced to dramatically cut its price, and will be a huge boost to other poker firms looking at listing this year.

Several of the largest US-facing poker firms, including Pokerroom, UltimateBet and PokerStars, are believed to be considering a listing on the London Stock Exchange.

Empire Online, the owner of Empire Poker, has already gone public in a US$900m IPO in mid-June.

But rumours investors were demanding a heavy discount on the PartyGaming IPO based on regulatory risk caused its share price to fall in its first day of trading.

Shares in Empire dipped as low as 149p from the initial listing price of 175p, knocking more than £70m off the valuation of the firm.

The firm is currently trading at 171p, slightly below its initial listed price.

www.egrmagazine.com/cgi-bin/articles.pl?action=display&id=820§ion=3&keyword=

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